James Allen News Center

A weak dollar is having a strong impact on diamond margins, De Beers noted this week.

High costs are also a factor, the firm said, coupled with a small rise in diamond prices. These factors have caused the outlook for the Christmas season to be not as strong as expected, but the firm`s spokesperson said, "At the moment, [the season] is going okay."

Also factoring into the equation are the problems with the mortgage industry in the US and a weaker economy in general. This is leading to less disposable income to spend on luxury items such as diamonds.

However, consumer demand for diamonds is still strong and there were signs that a sales spurt may be approaching.

Emerging diamond markets in Asia and Russia are helping to keep the demand for diamonds higher.

World demand has risen 4-5% in recent years, and the De Beers spokesperson expected